FinMin welcomes 25 bps rate cut

New Delhi, August 2, 2017

The Finance Ministry on Wednesday welcomed the move by the Monetary Policy Committee to lower the repo rate by 25 basis points.

“We welcome the 25 basis points cut in the repo rate as an important step necessary to converge towards appropriate real monetary conditions for sustained growth consistent with India’s potential and for stable, moderate inflation,” said Subhash Chandra Garg, Secretary, Department of Economic Affairs, adding that the government has taken note of the statement of the MPC and its assessment of the inflation and growth outlook.

Chief Economic Adviser to the Finance Ministry Arvind Subramanian had earlier raised concerns after the MPC had decided to maintain status quo in its second policy review in June.